Académique Documents
Professionnel Documents
Culture Documents
Student Name
Suwin Karunarathne
TP031486
Intake Code
: UC3F1404IT{BIS}
Module Title
Module Code
: BM050-3-3- IMNPD
Project Title
: Google Glass
Name of Lecturer
Hand in date
: 28/11/2014
: 06/02/2015
Word count
: 3508
Executive Summary
The current technology arena is subjected to rapid development and frequent changes with constant
innovation carried out by number of companies. Hence, in the software and IT industry Google,
Microsoft, Yahoo, Apple, Sony, and AOL Inc. can be classified as giants who are involved in
frequent innovation. The human desires and growth in technology has a direct correlation.
Therefore, when the scope of technology increases the desires of human increases as well.
Hence, as a ground to cater rising human desires Google unveiled their Google Glass project in
April 2011 boasting as the first movers in wearable technology. Google is considered as a highly
innovative company compared to its potential competitors, which heavily supported them to
develop Google Glass.
According to the study conducted, Google follows a solid NPD strategy and a process framework
in developing Google Glass. In addition, Google Glass can be labelled as a new product because
the firm has made rigorous changes to dimensions such as technology and quality
specification. Further, the operation environment of Google that nurtures innovation is
incontestable, which has enabled a solid ground for them to develop Google Glass.
Even though Google Glass is considered as a next generation product that takes sunglasses into
the next level of technology, it carries significant concerns as well. Privacy being one of them
hinders Google Glass from entering the market successfully. According to the Pearsons
uncertainty map, the product is in application engineering phase going under extensive research to
re-model it into the optimal condition suiting to the market. Whereby, it requires a combination of
market conditions and technology in order to launch the product into the market successfully.
Table of Contents
Executive Summary ......................................................................................................................... i
Table of Tables .............................................................................................................................. iv
Table of Figures .............................................................................................................................. v
Abbreviations ................................................................................................................................. vi
1
Introduction ............................................................................................................................. 1
1.1
1.1.1
1.1.2
1.1.3
Question 1 ............................................................................................................................... 9
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.2
2.2.1
2.3
2.3.1
2.4
2.5
Conclusion...................................................................................................................... 22
Question 2 ............................................................................................................................. 23
3.1
3.2
3.2.1
3.2.2
ii
3.3
3.4
3.5
Conclusion...................................................................................................................... 34
References ............................................................................................................................. 35
Appendix ............................................................................................................................... 39
5.1
5.1.1
5.1.2
iii
Table of Tables
Table 1 Google beliefs .................................................................................................................... 1
Table 2 Employee naming convention ........................................................................................... 5
Table 3 ANSOFF Matrix on Google ............................................................................................ 15
Table 4 Multi-dimensional concept of Google ............................................................................. 18
Table 5 NPD Process Framework ................................................................................................. 21
Table 6 Quadrant elaboration........................................................................................................ 26
Table 7 Organizational Characteristics that Foster Innovation..................................................... 28
Table 8 Virtuous circle explanation .............................................................................................. 31
Table 9 Google Benefits ............................................................................................................... 39
Table 10 Google Timeline ............................................................................................................ 41
iv
Table of Figures
Figure 1 Organizational structure ................................................................................................... 4
Figure 2 Walk in the park, London, UK ......................................................................................... 6
Figure 3 Tatami meeting room in Tokyo, Japan ............................................................................. 7
Figure 4 Bowling alee in Mountain View, California .................................................................... 7
Figure 5 Hatching ideas in Zurich, Switzerland ............................................................................. 7
Figure 6 Search marketplace ratings ............................................................................................... 8
Figure 7 Decision making process for generating NPD strategy.................................................... 9
Figure 8 Fuzzy front end theory.................................................................................................... 12
Figure 9 ANSOFF Matrix ............................................................................................................. 13
Figure 10 Industry growth framework .......................................................................................... 14
Figure 11 Multi- dimensional concept of products ....................................................................... 17
Figure 12 Change of product dimensions ..................................................................................... 17
Figure 13 NPD process ................................................................................................................. 20
Figure 14 Tension between creativity and organization efficiency .............................................. 23
Figure 15 Revenue generation ...................................................................................................... 24
Figure 16 Pearson's uncertainty map ............................................................................................ 25
Abbreviations
HQ- Head Quarters
NPD- New Product Development
SMEs- Small and Medium Sized Enterprises
vi
1 Introduction
1.1 About Google
Google concisely can be called as a search engine oriented company. The visionaries of Google
are Sergey Brin and Larry Page where they initiated Google as a university project called Backrub
in 1998 at Stanford University (Kuntze & Matulich , 2009). The seed has now grown into a billion
dollar company, which has captured almost every corner of the world, listing Google as a verb
in the dictionary (Kuntze & Matulich , 2009). This employee- centric organizations headquarters
is located in Mountain View, California, which also has its offices in 36 different countries
including 14 states in the USA. Further, Google was enlisted in the top 100 most powerful brands
while boasting about its product scope from web, mobile, media, geo, specialized search, home &
office, social and innovation (Google, 2014).
According to Google (2014), company operates based on ten core beliefs that are being revisited
on regular basis during strategic decision-making. The beliefs are as follows.
Table 1 Google beliefs
Belief
Explanation
will follow
really well
doing evil
The firm did not halt its progression from the mindblowing search engine. Google is a hard-core believer in
achieving success through innovation and iteration that has
led them to create many products. For example, initially
search engine was working fine with properly spelled
words, while it did not for typos, hence the firm came up
with the spell checker
Source: Google (2014)
CEO (Larry
Page)
Senior VP &
CFO
CBO
Chief
Economist
Director,
Advertismen
ts
Chief
Accountant
Head of
Global
Mobile Sales
VP of
Finance
VP,
Americas
Sales
CEO,
YouTube
Global Head
of Product
Commerciali
zation
Head,
Research
and Search
Director,
Google PLay
Senior VP,
Ads and
Commerce
Senior VP &
Google
Fellow
Senior VP
Access &
Energy
Senior VP,
Comm & PP
Senior Vp,
Public
Relations
Lead
Director
(John
Hennessy)
Chairman of
Board (Eric
Schmidt)
Senior VP,
Legal
Senior VP,
Google X
Director
(Sergey
Brin)
Senior VP,
Internation
Mrkt.
Director
(John Doerr)
Senior VP,
Knowledge
Corporate
Director,
Strategic
Initiatives
Director
(Diane
Greene)
Senior VP,
PO
Head of
Global
Staffing
VP PO
Senior VP
and General
Counsel
Director
(Ann
Mather)
Senior VP,
Products
Senior VP, TI
Regional
Director,
New
Prodcut
Solutions
Director
Performanc
e Solutions
VP Chrome
Books
VP Display
Advertising
VP Maps
VP, Real
Estate
VP Product
Managemen
t
VP Product
Mkt.
CTO Public
Sector
Director
(Alan
Mullaly)
Director
(Paul
Otellini)
Director
(Ram
Shriram)
Director
(Shirley
Tilghman)
Above diagrams defines the overall organizational structure of Google. Majority of the todays
firms prefer following bureaucratic or traditional organizational structure where decision-making
is done at the top level and ordered down to the lower levels. However, Google believes in
collective effort that persuades the firm to follow a cross- functional organizational structure
(DeCenzo , et al., 2013). Even though google comprises of a hierarchical structure as shown in the
figure 1, the firm ensures participation of every employee for decision making process, thus
making the employees feel as a contributor for Googles success (DeCenzo , et al., 2013).
1.1.2 Googles cooperate culture
Googles cooperate culture is well defined from its headquarters, Googleplex in Mountain View,
CA. The HQ is modelled in a manner similar to a college campus like environment that has directly
reflected on creating a high-energy, fast-paced work environment (Kuntze & Matulich , 2009).
The core intention of creating a relaxed and full of individuality environment is to promote
creativity and innovation within the Googlers, which has allowed the firm to develop variety of
innovative products in the recent past (Kuntze & Matulich , 2009).
According to Google (2014), the environment within the firm is diversified, meaning Google hire
individuals who are smart and determined from all around the world that speak dozens of different
languages. However, Google ensures that each employee shares a common goal and the vision of
the company (Google , 2014). The following employee naming convention followed by the
company shows the diversification and the respect of every culture, age, race etc.
Table 2 Employee naming convention
Name
Description
Googlers
Employees of Google
Xooglers
Nooglers
New recruits
Gayglers
Lesbian,
gay,
community
bisexual
and
transgender
Greyglers
The firm abides with a rule called 70/20/10, meaning 70% of their daily work is contributed
towards the projects assigned by the top management, 20% is allocated for working on new
projects and 10% for developing their personal new ideas (Thompson & Media , 2014). Hence,
company management states that aforesaid rule has catered towards rapid product development at
large, mainly due to the participation employees at every functional level (Thompson & Media ,
2014).
According to Google (2014), the firm follows a concept called TGIF meetings where every
employee is given the chance to share their ideas and directly connect with Larry, Sergy and other
executives, in addition, these meetings are held via email or in the caf.
Google currently boasts about maintaining their position in Fortune 100 best companies to work
for with their effective cooperate culture (Fortune , 2014). In support of the culture, Googlers are
provided with variety of benefits (see appendix 5.1.1) and big pay checks. See appendix 5.1.2 for
Google timeline.
Following figures shows Googles attractive and innovative office spaces in several countries.
2 Question 1
Discuss and suggest some feasible application considerations when developing a new product
development strategy for Google Glass.
marketplace (comScore , 2014). To conduct successful market planning Google high relies on
capturing consumer behaviour and feedback from customers. Therefore, they use various
algorithms and tools to track customer behaviour within their websites to gather data such as
trends, demographics, search pattern, buying pattern etc. (Ernst & Young, 2011). For example,
Nokia the leading mobile phone giant since 1990s failed vastly in the year of 2010 with Samsung
smartphones and Google Android OS taking over the market (Lomas, 2012).
Hence, it defines that company with the maximum amount of information regarding the market
will attain the monopoly over the competitors. In addition to the information, it is necessary that
firms follow a flexible marketing plan that could resist any external environmental change with
the NPD. Further, before launch of a new product it is necessary that company conduct in-depth
market research.
2.1.3 Ongoing Technology Management
This is aspect is significant for technological oriented companies, because, the firms awareness
on rapid technological development is essential in order to compete in the fast growing market
(SARIOLU , et al., 2013). For example, Nokia failed majorly in 2000s mainly due to the usage
of old aged software (Symbian platform) and hardware technology while IPhone introduced
cutting edge stylish smartphones that captured a vast market base (Lomas, 2012). Further, it is
necessary that companies maintain a parallel growth in between the R & D sector and the growing
technology in order to exploit largely available technological opportunities (SARIOLU , et al.,
2013).
On April 2004, Google implemented Gmail to compete with Hotmail and Yahoo Mail. However,
at present 288 million unique visitors are being handled by Gmail while Hotmail handles only 286
million by 2012 December (Brownlow, 2012). Gmail holds an upper hand among its competitors
due to its unique feature such as ability to compose an email while using the inbox and provision
of up to 10GB for file integration between Gmail and Google Drive.
Therefore, the technological department requires working closely with product development in
order to provide strategic partnership insights and product improvement efforts, which will allow
the firm to launch a NP successfully. Accordingly, Google continuously revisits the technological
11
aspect during NPD to ensure that product is interlined with the current technological development
trends (Google , 2014).
2.1.4 Opportunity Analysis/ Serendipity
Apart from the above inputs, there are certain inputs that are labelled as miscellaneous or
serendipity, meaning taking advantage of any unexpected discoveries (SARIOLU , et al., 2013).
Hence, it is essential that a firm identify its potential opportunities to exploit them and achieve the
upper hand among its competitors.
According to the Google rule of 70/20/10, each employee is given 20% of their daily time to work
on personal ideas that could enhance product formation (Thompson & Media , 2014). This fact
proves that Google follows a fuzzy front end theory, meaning all the generated ideas will be
discussed in TGIF meetings and put on to a context where it gives meaning to be used for product
enhancement.
Source: Herstatt (2001)
Above highlighted section in the figure defines the fuzzy front end, where the result is not certain
until it goes through a certain production process and pass the phase 2.
12
Further, Hussain et al. (2013) claims that NPD strategy as a whole does not cater towards firms
growth, the internal and external environment factors affects the business growth as well.
Therefore, in order to achieve successful growth it is necessary that firm consider the
environmental factors as well. Following diagram shows how firms can achieve growth with the
combination of environmental factors and growth strategies.
13
14
Existing Products
New Products
According to SARIOLU, et al. (2013), opportunities It is the process of providing new products into existing
to be exploited exists within the existing market space. markets and this approach is carries a higher risk. Hence,
Thus, market share can be increased by following this quadrant can be achieved through new product
different market mix activities. Google, as an approach development. Riley (2012) claims that, research &
to increase its market base, firm created strategic development and innovation, detailed insights into customer
alliances with many companies (UKEssays , 2014).
Existing
Markets
other browsers
15
Markets
(UKEssays , 2014)
Google glass is one of the best example, firms new trend,
which is a new product entering into a new market.
Therefore, company might face issues where certain
markets will not accept the product. Thus, it requires
extensive market research before launch
Source: Authors work (2014)
16
Brand name
Feature
s
Quality
Specification
s
Price
Packaging
Level
of
Service
Technology
Therefore, by changing any of the above dimension can result in new product development and
can be labelled as new theoretically (Trott, 2011). For example, Amazon conducting R & D on
developing a drone system to distribute small packaged items is a new process of conducting their
distribution proceedings. Following figure gives diagrammatic explanation of dimension change.
Brand name
Feature
s
Quality
Specifications
Price
Level
of
Service
Packaging
Technology
Figure 12 Change of product dimensions
17
Dimension
Brand name
Change
Description
Quality
specifications
Fits
o
Display
o
Photo: 5MP
Videos: 720p
Audio
o
Bone Conduction
Transducer
Connectivity
o
Bluetooth
Storage
o
12 GB of usable
memory, synced with
Google cloud storage
Battery
o
Camera
o
18
Charger
o
(Google , 2014)
Price
Packaging
Features
IPhone boxes
Wearable technology
Level of service
19
When analysing the above multi- dimensional concept of Google Glass, it can be identified that
Google Glass is a new product based on the technological and quality specification dimensions.
Google has managed to transform the high tech hand carrying industry to wearable technology.
Meaning, all the features included in an ordinary smartphone are being integrated into a sunglass
giving new customer experience.
20
Stage
Idea generation
Description
This is stage is when fresh ideas are being gathered it might be from
internal (employees) or external (suppliers, customers, distributors,
competitors). Further, this stage can be considered as a fuzzy front end
since ideas are not being compiled into a context that gives meaning.
Google encourages their employees to generate ideas on daily basis
Idea screening
Process by which ideas that are best suited for the organizations
sustainability is identified and rejecting the ideas that are not valuable.
The selection is done based on the size of the target market, expected
market growth, profitability etc. Google hold weekly TGIF meetings
where Googlers are allowed to share their ideas with the top management
Concept
This stage is when accepted ideas are being modelled into a working
development and
concept and tested. The concept will be launched into several areas such
testing
Business analysis
Based on the feedback and the history sales forecasting, costing of the
production and the profit statements will be generated in order to analyse
the feasibility of the product
Product
development
21
Test marketing
Selling the product into small market bases to identify the sales
percentage. For example, Google Glass is already being sold to parties
who interested but not to the mass market
Commercialization In this stage, all the plans such as advertising, manufacturing and
distribution will be made in order to cater the products effectively to the
mass market
Source: Authors work (2014) based on King Saud University (2014)
2.5 Conclusion
Author has discussed four different considerations that should be made during NPD, application
of NPD for rapid growth and multi- dimensional concept. When analysing the above information,
the considerations that were stated should be rigorously followed and revisited by Google when
developing Google Glass. Because, it was identified that Google Glass is a new product entering
into a new market, thus it carries a higher risk in the context of ANSOFF matrix. Hence, it is
essential that Google should be fully aware of the market changes and its trends. In addition, based
on the multi- dimensional concept application on Google Glass, it proves that this product can be
classified as a new product in the market with the significant changes in technology and quality
specifications dimensions. Further, Google Glass or any other new product should go through an
effective development process as shown above in order to achieve an effective market base upon
the launch of the product.
22
3 Question 2
In this highly competitive environment, illustrate how Google Glass better manage
innovation within the organization to stay ahead of its competitor in the industry?
For example, a distribution agent requires delivering its goods to retail outlets via multiple
channels to hit the daily target, while the firm requires generating new ideas to innovate the
distribution process in order to stay ahead among the competitors. Hence, if the organization
maintains a higher micro management level in one component compared to the other, organization
is bound to fail in the long run (University of Derby , 2014).
When applying Google to the scenario, it can be identified that the firm has taken every possible
step in order to nurture creativity while achieving constant effectiveness and efficiency. This fact
can be proved with their daily operation rule, which is 70/20/10 (Thompson & Media , 2014).
23
Where each employee is required to allocate 20% of their daily time to generate creative ideas
while 70% of their time in working on the assigned projects. Further, when analysing Googles
evolution timeline (appendix 5.1.2) it shows that company has maintained a constant NPD
percentage since 1995 that has directly reflected on its revenue growth over time. Following figure
proves that Google has managed to increase its profit every year even though the firm carry out
major innovation projects.
24
Following figure shows the Pearsons uncertainly map that defines the uncertainty and how it
varies over time.
25
Quadrant
Explanation
This quadrant carries a high level of uncertainty, because the end
output (product) and the process of achieving the final output is not
clear. Google Glass is one of the best examples that fit this quadrant.
Exploratory
research
Development
engineering
Application
engineering
put into practice. Current status of Google Glass can be applied into
this quadrant. It was identified that Google Glass is being distributed
among many social entities such as police forces, universities,
26
about
the
product
from
different
perspectives.
Combining
market
opportunities
Therefore, for Google Glass to enter into the market, firm needs to
with technical
capabilities
27
Characteristic
Growth orientation
Description
Any firm whose main objective is to be a leading giant in their
respective industry requires making growth as their common
goal. Growth does not mean that a firm should earn large
amount of profits over the year, it is all about expanding their
company portfolio. Google can be classified as a perfect
growth oriented company, when identifying its major
acquisitions over the year. Google acquired YouTube, Waze,
Motorola, DoubleClick marketing agency, KeyHole etc.
Vigilance
Commitment to technology
Many researches show that silo operation and lack of interdepartmental communication acts as a major barrier for
innovation. Hence, it is necessary that each departmental unit
should be closely linked in order to generate ideas effectively.
For example one of the sale representatives forwarded the 3M
scotch tape ideology. Thus, relationship between R&D and
other units should be effective. DeCenzo , et al. (2013) claims
that Google follows a cross- functional organization structure
where employees in each functional level are encouraged to
conduct idea generation for product development and decision
making
Receptivity
Slack
30
Attribute
Description
Organizations reputation
for innovation
Individuals
from
different
technical
and
non-technical
people
Organizational
encouragement
Development of innovative The development of new products does not require an integration
product
32
organization to accept new accept any suitable changes or new ideas and carry it out through
ideas
reduces frustration
more ideas in the future. Google highly works on this factor; the
best example is their TGIF meetings, where each employees is
given the chance to connect with Larry, Sergy or any other
executive to share their ideas. In addition, Google operates as
small business units, which allows employees at every functional
level to share their ideas and contribute for companys success
High morale and retention Upon the completion of each entity as discussed above, it will
of creative people
According to the above table, it can be identified that Google has successfully surpassed each
entity in the circle, allowing the firm to operate within the loop. This loop certainly has given
competitive edge for Google, in result, any additional profit generated from this circle can be reinvested to reinforce the loop and maintain the momentum.
33
3.5 Conclusion
Author has discussed several aspects that Google should concentrate when managing innovation
during the development of Google Glass and to stay ahead of its possible competitors.
Accordingly, the potential competitors of Google Glass are Sony, Oakley, Baidu, Apple, and
Oculan. Among them Sony is developing something similar to Google Glass while Oculan, which
is a Taiwanese company is producing the same product at a lower price. Therefore, it is necessary
that Google use the innovative frontier, which they nurture already in order to counter the possible
competitors. It was identified that majority of the discussed characteristics that foster innovation
in organizations are present within Google, therefore, the company should take required steps to
strengthen it and maintain. In addition, Google has taken satisfactory measures to address the
dilemma of innovation within organizations. In addition, Google should maintain its momentum
in order to strengthen is virtuous circle, which allows them to gain a completive advantage. The
only fall back of Google Glass is that it is still in the application-engineering quadrant according
to the Pearsons uncertainty map. Therefore, Google should carry out extensive research and use
their technology combined with the market research to move on to the 4th quadrant allowing the
product to be launched to the market successfully and achieve fight against the possible
competition.
34
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38
5 Appendix
5.1 About Google
5.1.1 Google Benefits
Table 9 Google Benefits
Benefit
Free food
Description
Googles rule is that food sources should be within 100 feet from staff
members, therefore, Googleplexs 11 gourmet restaurants provide
variety of food to its employees. This includes other offices as well
Onsite childcare
facility
child care for Californian parents when their routine child care falls
behind
Healthcare services
Google ensure 100% medical care for the Googlers and their family
member. In addition, on site physicians and dentists are available at
Mountain View and Seattle campuses
Transportation
services
busses
Laundry services
Mountain View campus allows free laundry for all the employees
Sport facilities
Pets allowed
program
personal ideas
Environmentalism
39
Numerous holidays
Other services
40
Year
1995
Significance
Larry and Sergy in Stanford build a search engine called Back Rub on Stanford
servers that ended up exceeding the existing bandwidth
1997
1997
January
1997 April Launching of the Google Friends Newsletter, which included company
information
1997
August
1997
September
1997
Google was listed as the search engine of choice in the top 100 websites
December
1998
Moving to a new location in Palo Alto, California with eight new employees
February
1998 April Yoshka, the first company dog
1998 May
1998 June
Releasing of the first press with a $25 million round from Sequoia Capital and
Kleiner Perkins; John Doerr and Michael Moritz join the board.
41
1998
August
1998
November
1999 April Launching of the first April Fools Joke, MentalPlex
1999 May
1999 July
1999
September
1999
October
1999
December
2000
February
2000
March
2000 April Swedish chef becoming a language search preference in search
2000 July
2000
August
42
2000
December
2001
February
Releasing of the first Google products to enterprise that allows to search their
own documents when plugged into the network system
Introduction of Cost-per-click
2001 April Releasing a set of APIs, allowing developers to query more than 2 billion web
documents and program in their favourite environment
2001 May
2001 May
2001
October
2001
December
2002
February
2002
March
2002 April Google Grants, the non-profit version of AdWords
2002
October
2002
December
2003
January
43
2003
March
2003 April
Introducing Gmail
Introducing Google Blog
2003 July
Acquisition of Picasa
2003
Going public, with 19,605,052 shares of Class A common stock on Wall Street.
August
2003
September
2003
October
2003
November
2003
December
2004
February
2004 April
2004 May
2004 June
2004
August
2004
October
2004
November
2004
December
2005
March
2005 April
2005 May
2005 June
2005
August
2005
October
Acquisition of YouTube
45
2006
January
2006
February
2006
Launch of GBikes, allowing the employees to get around the campus effectively
March
2006 April Launch of GOOG-411, allowing people to dial the number and obtain local
information
2006 May
2006 June
2006
September
2006
November
2007
January
2007
March
2007 May
46
2007
August
2007 June
2007 July
2007
September
2007
November
2008
February
2008
March
Google Chrome on OS
2008 July
2008
September
2008
October
2008
December
47
2009
January
2009
February
2009
March
2009 April Launch of the transparency report
2009 May
Launch of Google TV
2009 July
2009
August
2009
September
2009
October
2009
YouTube TrueView ads, allowing user to skips the ad after 5 seconds if not
December
interested
2010
February
48
2010 June
Google+ project
2010 July
2010
Allowing offline access to Google Apps (Gmail, Docs) who are using Chrome
August
2010
September
2010
Android 4.0, Ice Cream Sandwich becomes available on both tabs and phones
October
2010
November
2010
December
2011
February
2011
March
2011 April
2011 May
Acquisition of Motorola
49
2011 June
2011 July
2011
October
2011
November
2011
December
2012
January
2012
Enhanced campaigns
February
2012 June
2012 July
Acquisition of Waze
Launch of Chromecast
50
2012
September
2012
October
2012
November
2012
December
Infrastructure on launch it
2013
January
2013
February
2013 June
2013 July
51